Meet Arun Iyer, CEO of Alpha Direct Insurance Company, and Zach George, general partner at Launch Africa Ventures, and learn what it takes to transition your funding from friends and family to angel investors and venture capital.
Like most entrepreneurs, Arun relied on friends and family to get his Botswana-based insurtech company off the ground. But bringing insurance to the masses — both within Botswana and across the region — required more substantial sums. And thinking small was preventing him from making it big.
“I believed that only these three people would finance my business. Today, I'm raising money from funds that are located across the world. You know, part of our pre-series A was a fund from Switzerland, Launch Africa Ventures is in. So, now the whole world has been opened up. And technically you can do that at any stage, there's nothing preventing you. The only thing that was preventing us from doing it was my mindset. And once I removed that self-doubt, now the world became my oyster.”
Arun learned that building relationships based on mutual trust is key to securing capital. And Zach George agrees … along with what he calls the ‘napkin test’. Zach looks for founders who can explain in just a few minutes how they plan to get to $100 million. “The majority of founders can never do that. They fail miserably at it, or they'll say, "hey, can I open up my spreadsheet or I'll talk to my CFO". If you give me the, 'let me talk to my CFO', you've lost me.”
Listen to Arun’s capital raising strategies and Zach’s investor insights to help fund and grow your own company.
Resources:
Alpha Direct, Botswana: https://www.alphadirect.co.bw/
Stanford Seed: http://stanfordseed.co/Grit
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